The Inhibiting Effect of Urban and Rural Minimum Living Standard Security System on Labor Participation in the Context of the Employment First Strategy:The Evidences from Fuzzy Regression Discontinuity
The argument that welfare raise slackers has shed the light on the employment incentive mechanism of minimum living standard security policies in China in recent years.This paper,based on the data of CLDS 2018,estimates the effects of the national minimum living standard security system on the recipients'labor participation by fuzzy regression discontinuity.The findings show that the implementation of the minimum living standard security policy indeed inhibits the labor participation behaviors and significantly reduce the labor supply level of urban and rural low-income groups,particularly for the low-income groups from the rural,with heavy burden of family member cares,younger than 34,femal,with the education of high school and above.The conclusion remains robust after tests of replacing dependent variables,replacing data of other years,and transforming bandwidth ranges.Therefor it is important to reduce the inhibition of labor participation on the premise of fully consideration of the employment plight of the subsistence allowance recipients by clarifying the key points of policy intervention,strengthening the linkage between the subsistence allowance reception and the labor market,continuously updating employment activation policy system,and exploring various types of employment promotion programs on the basis of hierarchical and categorical assistance,so as to cultivate the sustainable employability of the poor groups.
Minimum living standard security policyLabor supplyFuzzy regression discontinuityWelfare dependencySocial security